Chapter 5
Project Management Planning,
implementation and Control
5.1. Project planning
5.2. Project organization
5.3. Project Implementation
5.4. Project Monitoring and Control
5.1. Project Planning
Planning and Project Planning
Plan and Planning
An Old Adage:
Fail to Plan . . .
and You Plan to Fail!
Plan and Planning
A plan is a set of decisions made on actions to be
taken to reach a goal.
Plan is coherent set of operations designed to meet a
given goal.
It is determined with sufficient clarity that may be acted
upon.
It is the product of the process of planning.
A plan can be a very formal document, or it can
simply be the clear understanding of the actions
you are going to undertake.
Planning is an active process and it is opposite of simply
allowing events to unfold.
Both plan and planning is a never-ending activity.
Your plan will be shaped and reshaped by new forces and new
information you discover as you proceed with your action.
Planning involves vision, discovery, decision-making and
action.
It is a purposeful way of looking at the future with the intent
to shape it.
Project plan?
Meaning
The project plan is a consistent, coherent, formal and
approved document that guides both project
execution and project control.
A project plan may be summary or detailed.
"A statement of how and when a project's
objectives are to be achieved, by showing the
major products, milestones, activities and
resources required on the project”.
Project Plan. What it is and is not ?
Initiate Plan Execute Control Close
Project Plan means devising and
maintaining a workable scheme to
accomplish the business/ service/
development need that the project was
undertaken to address.
• Project Plan is the work plan, not the work.
• Project Plan is a definition of needed work and
resources
The Project Plan
PMBOK Definition: The project
management plan defines how the project
is executed, monitored and controlled,
and closed.
PMBOK Glossary Definition: a project plan
is a “formal, approved document that
defines how the project is executed,
monitored and controlled.
It may be summary or detailed and may be
composed of one or more subsidiary
management plans and other planning
documents.”
The Project Plan
Planning processes performed to define and mature
the project scope, develop the project
management plan, and identify and schedule
the project activities within the project
• The plan addresses the following questions in the
following sections:
What is to be done?Project Scope
Who’s authority? Authorization/Chartering
How it is to done? Integrated Management Plan
What time and dollars are needed? Resource
Estimates (Baseline)
The Project Plan’s Key Elements
What makes up a project plan?
Threaded within the document, major contents of
the plan, include:
1. Project Authorization or Charter
2. Scope Statement
3. Work Breakdown Structure, WBS
Project Schedule Network Diagram
4. Project Management Approach
5. Integrated Management Control Plan
Scope Management Plan
Schedule (Management Plan)
Cost (Budget) Management Plan
Quality Management Plan
Staffing (HR) Management Plan
Communication Management Plan
Risk Management Plan
Risk Register
6. Procurement (and Contract) Management Plan
7. Performance (Measures) Baseline
Schedule Estimates
Major Milestones
Cost Estimates
Cost Baseline
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5.2. Project Structure
Once management approves a project then the
question becomes, how will the project be
implemented?
There are three different project management
structures used by firms to implement projects:
functional organization, dedicated project
teams, and matrix structure.
1. Departmental Project Management
Division Manager
Department X Department Y Department Z
Project Leaders Project Leaders Project Leaders
Section Level Section Level Section Level
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2. Pure Project Structure
General Manager
Project A Project B Project C
Manager Manager Manager
ENG. MFG. ENG. MFG. ENG. MFG.
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3. The Matrix Management
Structure
General
Manager
Engineering Operations Finance Others
Functional Responsibility
Project Mgr. Project Responsibility
X
Project Mgr.
Y
Project Mgr.
Z
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Modification of the Matrix Structure (With a Director of Project
Management)
General Manager
Director: Director: Director: Director:
Project Mgmt. Engineering Manufacturing Finance/Admin.
Project Mgr. X
Project Mgr. Y
Project Mgr. Z
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5.3. Project
Implementation
Process whereby “project inputs are
converted to project outputs”.
May be looked at as:
Putting in action the activities of the project.
Putting into practice what was proposed in the
project document (i.e. transforming the
project proposal into the actual project.)
Management of the project or executing the
project intentions.
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Project Implementation (cont.)
Implementation usually done by implementing
agency (organization) that prepared the project
and received funding for it.
Other organizations that participate in the
implementation of the project by way of
collaboration, say by according good working
relationship, extending technical advice or
seconding their staff to the project are referred to
as co-operating agencies.
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5.4. Project Monitoring and Control
Project Monitoring: Collecting,
recording, and reporting information
concerning any and all aspects of
project performance that the project
manager or others wish to know.
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Monitoring Has Several Uses:
The primary use is project control
Ensuring that decision-makers have timely
information enabling effective control over the
project
Project Monitoring has secondary uses
Project auditing
“Lessons learned”
Reporting to client and senior management
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The Planning-Monitoring-Controlling Cycle
Effective monitoring and control begins with
good project planning
What are the critical areas?
How and when can progress be measured?
Who gathers and reports information, to whom?
The plan-monitor-control cycle continues
through the entire project.
1. Start with the key factors to be controlled
2. Develop measurement systems
3. Collecting Data:
4. Reporting on Data Collected
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Designing the Monitoring System
1. Start with the key factors to be controlled
Pareto analysis: a relatively few activities
determine most of the project’s success.
Use the project plan to identify items to be
monitored
Although other areas might be added also
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Cont’d…
2. Develop measurement systems
Measure results(0utputs) not activity
and inputs
Extract performance, time and cost goals
from project plans
Avoid tendency to focus on that which is
easily measurable.
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Cont’d…
3. Collecting Data: Most data falls into one
of five categories, as follows (with
examples)
Frequency counts: tally of occurrences . . .
Raw numbers: dates, dollars, percents,
Subjective ratings: numerical ranking, red-
yellow-green assessments . . .
Indicators: surrogate measures of merit . . .
Verbal measurement: oral or written
characterizations . . .
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Cont’d…
4. Reporting on Data Collected: To turn data
into information, it must be contextualized:
Reporting must be timely
Data must be analyzed
Trends: Getting better or worse?
Comparables: Performance compared to specs,
past performance, standard hours, etc.
Statistical analysis
Causation and correction
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Project Control
Control is the last element in the
implementation cycle of planning-monitoring-
controlling
Control is focused on three elements of a
project
Performance
Cost
Time
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The Project Control Process
Control
The process of comparing actual performance against plan to
identify deviations, evaluate courses of action, and take
appropriate corrective action.
Project Control Steps
1. Setting a baseline plan.
2. Measuring progress and performance.
3. Comparing plan against actual.
4. Taking action.
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Controlling Performance
There are several things that can cause a
project’s performance to require control:
Unexpected technical problems arise
Insufficient resources are available when needed
impossible technical difficulties are present
Quality or reliability problems occur
Client requires changes in specifications
Inter-functional complications arise
Technological breakthroughs affect the project
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Controlling Cost
There are several things that can cause a
project’s cost to require control:
Technical difficulties require more resources
The scope of the work increase
Initial bids were too low
Reporting was poor or untimely
Budgeting was inadequate
Corrective control was not exercised in time
Input price changes occurred
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Controlling Time
There are several things that can cause a project’s
schedule to require control:
Technical difficulties took longer than planned to
resolve
Initial time estimates were optimistic
Task sequencing was incorrect
Required inputs of material, personnel, or equipment
were unavailable when needed
Necessary preceding tasks were incomplete
Customer generated change orders required rework
Governmental regulations were altered
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Purposes of Control
There are two fundamental objectives of control:
1. The regulation of results through the alteration of
activities
2. The stewardship of organizational assets
The project manager needs to be equally
attentive to both regulation and conservation
The project manager must guard
the physical assets of the organization,
its human resources, and
its financial resources
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Physical Asset Control
Requires control of the use of physical assets
Concerned with asset maintenance, whether preventive
or corrective
Also the timing of maintenance or replacement as well
as the quality of maintenance
Setting up maintenance schedules in such a way as to
keep the equipment in operating condition while
minimizing interference to ongoing work
Physical inventory whether equipment or material
must also be controlled
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Human Resource Control
Stewardship of human resources requires
controlling and maintaining the growth
and development of people
Projects provide fertile ground for
cultivating people
Because projects are unique, it is possible
for people working on projects to gain a
wide range of experience in a reasonably
short period of time
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Financial Resource Control
The techniques of financial control, both
conservation and regulation, are well known:
Current asset controls
Project budgets
Capital investment controls
These controls are exercised through a series
of analyses and audits conducted by the
accounting/controller function
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Financial Resource Control
Representation of the accounting/controlling
function on the project team is mandatory
The parent organization is responsible for the
conservation and proper use of resources
owned by the client or charged to the client
Due diligence requires that the organization
proposing a project conduct a reasonable
investigation, verification, and disclosure of all
material facts relevant to the firm’s ability to
conduct the project
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In Sum, Control is directed to performance,
cost, and time
The two fundamental purposes of control are to
regulate results through altering activity and to
conserve the organization’s physical, human,
and financial assets.
END
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